The talk that the formation of NDA Government at the Centre will give momentum to disinvestment of public sector units has brought all the unions of Visakhapatnam Steel Plant on a common platform to oppose any fresh bid to offload the shares of Rashtriya Ispat Nigam Limited.
RINL, the corporate entity of the VSP, had made three bids to get listed but could not succeed once due to June 13, 2012 accident in the steel melt shop and twice due to volatile market conditions during the United Progressive Alliance-II regime.
After appointment of merchant bankers and submission of red herring prospectus to market regulator SEBI, the government was supposed to offload 10 per cent of its total share of Rs.4,890 crore in RINL to meet the target of an estimated Rs.2,500 crore through Initial Public Offering (IPO).
Despite stiff resistance by unions of the VSP with divergent views, the UPA-II wanted to go ahead with disinvestment. Now the Narendra Modi-led NDA Government, market sources say, is very keen on disinvestment of PSUs. Union Finance Minister Arun Jaitley has already hinted at implementing disinvestment vigorously after the government’s in-principle decision to allow 100 per cent FDI in Defence production.
RINL disinvestment is expected to be a political hot potato. All the trade unions of VSP met here recently and adopted a resolution to oppose tooth and nail any fresh bid to offload shares of the profit-making Navratna company.
“We are very firm in our view that once allowed, the 10 per cent disinvestment will finally lead to total privatisation of RINL affecting the security of 30,000 workers employed directly and indirectly,” Visakha Steel Workers’ Union general secretary D. Adinarayana said.
The INTUC and the BMS have also joined hands to oppose disinvestment. “We have no differences over our opposition to disinvestment and we want that the authorities explore other options like bank borrowing to avoid listing to raise funds to meet the requirement for our next phase of expansion,” said Steel Plant Employees’ Union deputy general secretary J. Simhachalam.
